By on June 16, 2009

The WSJ reports that the Treasury has turned down an $8-$10 billion request by the OEM Supplier Association for aid to struggling auto supply firms. Department of The Treasury spokesfolks refuse to shed any light on the issue, but OEMSA President Neil De Koker tells the WSJ that PTFOA member Ron Bloom spiked the request because “they felt that unless we see chaos or a disorderly situation arising where have assembly-line shutdown due to lack of ability to get parts or stuff like that, then we would relook at this sitation, but that at the present time we believe everything is working.” The Journal goes as far as to credit this with decision with signaling “that the Obama administration wants to draw the line on how much taxpayer money it will spend on the U.S. auto industry.” That, or they know that supplier bankruptcies have been part and parcel of the US car biz for years now, and they’re keeping the powder dry for future OEM requests.

In a move that echoes a point brought up in our first vidcast (since pulled for atrocious sound/video quality), the OEMSA is now lobbying congress to pass supplier aid. As Farago put it, whose car company is this anyway? If the PTFOA and congress don’t get on the same page with a coherent strategy, expect more executive/legislative clash on these issues. Because in Washington, no tough decision goes un-grandstanded against.

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7 Comments on “White House Nixes Supplier Aid...”


  • avatar
    50merc

    Where do we draw the line?
    It’s a long food chain, Swift observed:

    “Big bugs have little bugs
    Upon their backs to bite them.
    Little bugs have littler bugs.
    And so, ad infinitum.”

  • avatar
    Bunter1

    Translation-”None of your individual companies has a high enough public profile to justify the political risk.”

    Love ‘n bullets.

    Bunter

  • avatar
    "scarey"

    OK, let’s allow GM and Chrysler to weasel out of paying them for parts already delivered, then deny them bailout money to recoup the losses. And we’ll cry foul if they refuse to sell any more parts to GM or Chrysler. Then we’ll wonder why GM and Fiat go broke again.
    The whole bailout idea is looking worse and worse. Should have let the bankers piss off, then we wouldn’t have had this mess.

  • avatar
    wsn

    they felt that unless we see chaos or a disorderly situation arising where have assembly-line shutdown due to lack of ability to get parts or stuff like that, then we would relook at this sitation, but that at the present time we believe everything is working

    ————————————————–

    Why don’t we do the same thing to GM/Chrysler?

    Chairman Obama wanted you to believe that without a GM bailout, 10 million people would lose their job.

    Why don’t we use the logic here? How do we know if it’s true that 10 million jobs will be lost? Or is that just what Chairman Obama wanted you to believe?

    In the worst case that does happen, the $100B we already wasted can support 10 million people with $10k after tax income. That should give them several months’ time to find the new jobs.

  • avatar
    P71_CrownVic

    Chairman Obama wanted you to believe that without a GM bailout, 10 million people would lose their job.

    Why don’t we use the logic here?

    Yeah…why don’t we.

    Is that why Bush gave them money in DECEMBER???????????????????????????

  • avatar
    CarShark

    I’m confused.

    Part of me likes knowing that there may be an end in sight to the bailout buffet.

    Another part of me is thinking, “Soooo…you’re going to wait until after the shit hits the fan to turn it off? Hunh.”

  • avatar
    derm81

    Ok, so does anybody know how I, Derm81, can apply for some aid from Mr. Obama? I’d say I need about 4-5 million dollars. Can we make this happen?


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